In his first budget as mayor, John Cranley did what he promised during his campaign – focused on basic services.

His proposed $358.2 million general fund budget, which still must be vetted and approved by Cincinnati City Council, would increase police and fire services, fill more potholes, pave more roads and invest in neighborhood projects.

Under Cranley's proposal, the city would spend about 5.6 percent less than it did in 2014. No employees would be laid off.

Cranley, flanked by dozens of police and firefighters as well as council members Kevin Flynn and Christopher Smitherman, unveiled his budget Wednesday at Cincinnati police headquarters.

Cincinnati Mayor John Cranley discusses the 2015 budget with the Enquirer Editorial Board.
The Enquirer/Glenn Hartong

Cranley touted his budget as a change from past years, when one-time funding sources were used to patch deficits.

In 2011, city officials raided emergency reserves and borrowed money from the workers compensation fund to find $27 million. In 2012, officials balanced the budget with a one-time $14 million settlement from Convergys in lieu of the company living up to job creation promises.

During a live interview at Cincinnati.com, Cranley told the Enquirer the previous administration was living in "La la Land," funding too many projects. And while he doesn't like being the "grown-up," that's his job. Cranley's proposed budget would divert $3 million in casino revenues from the capital budget into the operating budget; that casino money would have gone to pay for city investments like roads and big purchases.

The budget proposal comes after major credit rating agencies lowered their marks for the city of Cincinnati. Standard & Poor's in March lowered the city's rating to "AA-" from "AA," matching what credit rating agency Moody's did last summer.

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A breakdown of the proposed budget.(Photo: The Enquirer/Randy Mazzola)

Cincinnati City Council Finance Committee Chairman Charlie Winburn left council with this message Wednesday: "Let's have less drama on this budget."

The new budget must be passed before the July 1, the beginning of the 2015 fiscal year. This is the second year the city is operating under a July 1-June 30 fiscal year.

When the budget ran on a calendar year it was not uncommon to see council members bicker down through the Thanksgiving and Christmas holiday, while massive layoffs loomed for city workers.

Winburn said he hopes to wrap up the budget process by June 1.

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John Cranley's proposed budget would divert $3 million in casino revenues from the capital budget into the operating budget.(Photo: The Enquirer/ Liz Dufour)

Cranley, a former Cincinnati City Council finance committee chairman, was elected in November over former vice mayor Roxanne Qualls.

WAIT, DOES THE BUDGET ADDRESS THE PENSION?

The proposed budget also cuts $13 million in annual payments to the city's pension fund. The city would only pay 14 percent of total payroll, or about $22.9 million, into the struggling pension system. In the current fiscal year, the city paid nearly 22 percent, or more than $36 million, into the $2.1 billion fund out of a payroll of nearly $160 million.

But the city is counting on reducing retiree health benefits to save $100 million, and transfer those savings into the pension fund to strength that system's financial status. And the proposed budget uses that potential transfer as justification for cutting the annual pension fund payment. However, that transfer is still pending approval by both the IRS and a federal judge.

The pension system faces an $862 million unfunded liability, and the city has agreed to undergo mediation overseen by a federal judge to come up with a final solution to return to solvency. The options include the $100 million transfer as well as cutting cost of living adjustments for current and future retirees as well as committing the city to a stable annual payment. But that $100 million payment still needs the approval of U.S. District Court Judge Michael Barrett. He was overseeing a lawsuit by retirees against the city over proposed cuts that has now been turned into a binding negotiation.

-- James Pilcher

WINNERS AND LOSERS

The Enquirer combed through the 400-page budget and several supplimental documents to identify winners and losers:

Winners

Employees: Nobody would be laid off. And two unions would see their members get raises.

Public safety: The police department is getting 80 new officers via two recruit classes. Officers would be armed with new Tasers and get new video equipment in cruisers. The fire department, partly through a federal grant, would hire 50 new firefighters. Cranley expects to eliminate brownouts by the end of the year. Three years ago about a quarter of the department would be shuttered at any one time.

Drivers: 100 miles of city street would be paved, and the budget calls for an additional 8,000 potholes to be filled.

Kids: All pools would stay open, including Filson Pool in Mount Auburn and Spring Grove Pool in Spring Grove Village, which were slated to close under a previously passed budget. All recreation centers would remain open.

Losers

Large scale economic development: The city had promised to give the Port of Greater Cincinnati Development Authority $6 million to do large scale development projects in a previous budget, but Cranley's budget does not include that; it would give the port the same $700,000 for operating as it did last year and control of the Fountain Square South garage, which would be a revenue stream.

Lackadaisical parkers: The city would step up parking meter enforcement by doubling the staff of meter readers from five to 10.

City departments: All city departments – even police and fire –would have to reduce their budgets by an average of 4.4 percent. Some – like the health department at a 12.9 percent cut and public services at a 12.5 percent cut – have to lop off more than 10 percent of their budget.

Water drinkers: The budget includes a 7.5 percent increase in water rates in order to maintain water lines and fire protection services. The rate increase would be effective Jan. 1, 2015. The average water user would pay $4.17 more a quarter, going from $57.65 a quarter to $61.82 a quarter.

Cincinnati City Council has to approve the budget. Members got their first look Wednesday morning and all said their comments are first reactions; they'll be spending the coming days taking a closer look. Cranley asked any suggested additions be off-set by cuts.

Early comments suggest council may challenge Cranley over funding for the Port Authority and the pension.

Chris Seelbach:

"It's a good place to start, better than expected. There is a huge risk in drastically reducing the city's contribution to the pension."

Amy Murray:

"I'm committed to the budget being structurally balanced. It is now."

Charlie Winburn:

"I wanted deeper cuts, but this isn't about me. It's about the citizens of the community. I'm happy we're headed to a structurally sound budget."

David Mann:

He complimented the mayor on his comprehensive knowledge of the budget. "I'm impressed that there are no layoffs, but it's structurally balanced." He'll be looking into department cuts.

Christopher Smitherman:

He's interested in looking at giving the Port Authority more money. "There are a few things I will make some tweaks to."

Wendell Young:

He praised the inclusion of 1.5 percent raises for the unions, but questioned diverting $3 million in casino money to the general fund and expressed concern about the pension plan. "If it doesn't work out, that's one heck of a hole." And, he said, "I'm stopping short of calling it a structurally sound budget."

Yvette Simpson:

She said she was still reviewing it.

Kevin Flynn:

He could not be reached for comment Wednesday evening.

PG Sittenfeld:

"At first blush, the budget shows creativity, it reflects compromise and it's a strong place to start. In the weeks ahead, council will make our tweaks and improvements."

YOU WOULD ALSO PAY MORE FOR

Security alarms:

The budget proposed a new one-every-two-years registration fee of $50 for residential security alarms and $100 for a non-residential alarms.

Building permits: The cost - which vary by the size of the project - would jump five percent next year and one percent every year after. They have not increased since 2009.

Fire safety permits: Their cost would increase from $100 to $125 per permit.

Special events application fee:

This would be a new fee; its cost not named, but proposed as comparable to other cities.